# What Leverage Do Experienced Indices Traders Use?

## Limitations of Leverage

The best indices Trading leverage to use is 100:1 leverage ratio. This is the leverage ratio in stock indices trading that is also used by experienced stock indexes traders.

**For $100 Indices Trading Account Equity**

With 1:100 leverage ratio when you open an account with $100 you will have trading capital of $10,000 to open stock indexes trades with - with 1:100 leverage it means your indices broker gives you 100 dollars for every 1 dollar that you have in your stock indexes trading account. Therefore, if you have 100 dollars - 100*1:100 Leverage is equal to 10,000 that you can trade with.

in Indices Trading with $100 dollars you can control $10,000 dollars capital to trade trading indices with after leverage of 1:100

**For $500 Indices Trading Account Equity**

With 1:100 leverage ratio when you open an account with $500 you will have trading capital of $50,000 to open stock indexes trades with - with 1:100 leverage it means your indices broker gives you 100 dollars for every 1 dollar that you have in your stock indexes trading account. Therefore, if you have 500 dollars - 500*1:100 Leverage is equal to 50,000 that you can trade with.

in Indices Trading with $500 dollars you can control $50,000 dollars capital to trade trading indices with after leverage of 1:100

**For $1,000 Indices Trading Account Equity**

With 1:100 leverage when you open an account with $1,000 you will have trading capital of $100,000 to open stock indexes trades with - with 1:100 leverage ratio it means your indices broker gives you 100 dollars for every 1 dollar that you have in your stock indexes trading account. Therefore, if you have 1,000 dollars - 1,000*1:100 Leverage is equal to 100,000 that you can trade with.

in Indices Trading with $500 dollars you can control $100,000 dollars capital to trade trading indices with after leverage of 1:100

What's the Best Leverage to use when indices Trading? - 100:1 Leverage ratio

**For $2000 Indices Trading Account Equity**

With 1:100 leverage ratio when you open an account with $2000 you will have trading capital of $200,000 to open stock indexes trades with - with 1:100 leverage ratio it means your indices broker gives you 100 dollars for every 1 dollar that you have in your stock indexes trading account. Therefore, if you have 2000 dollars - 2000*1:100 Leverage is equal to 200,000 that you can trade with.

in Indices Trading with $2000 dollars you can control $200,000 dollars capital to trade trading indices with after leverage of 1:100

### Significance of Indices Trading Leverage - Limitations of Leverage - Indices Leverage Ratio

**The more leverage you use the greater the profit or loss**

**The less leverage you use the lesser the profit or loss**

It is therefore better to use less leverage so as to minimize the risks involved. **The higher the leverage ratio used the higher the risk. This is one of the Indices Trading leverage rules not to trade with more than 5:1 leverage ratio.**

**In Indices Trading money management rules: It is always advisable to stay below 10:1 leverage ratio which is still high, most professional traders use 2:1 leverage ratio meaning they trade only 2% of their Indices Trading Account**.

To Learn and Know More about Indices Trading Leverage and Margin - Read the Learn Indices Trading Below:

Indices Trading Leverage and Indices Trading Margin Explained